Versions :<1234567891011Live
Snapshot 11:Thu, Nov 14, 2024 7:05:34 AM GMT last edited by Adam

Argentina's Monthly Inflation Drops to 2.7%

Argentina's Monthly Inflation Drops to 2.7%

Above: Javier Milei, Argentina's president, delivers the 2025 budget at the National Congress in Buenos Aires, Argentina, on Sept. 15, 2024. Image copyright: Tomas F. Cuesta/Contributor/Bloomberg via Getty Images

The Spin

DespiteArgentina's inheritingeconomic anchallenges economylie ravagedbeyond byjust 211% inflation, Pres. Milei'sThese boldinclude "shockdeep-seated therapy"fiscal isdeficits, bearingrepeated fruitdebt indefaults, Argentina.and Hisa uncompromisingreliance focus on balancingcurrency budgetscontrols that distort trade and endinginvestment, moneyand printingincrease haspoverty. drivenMilei inflationis downaddressing dramatically.these Whileissues theby pathcutting hassubsidies beenand painfulpublic spending, withyet necessarythese recessionausterity measures risk public backlash and spendingeconomic cuts,contraction. theStructural strategy'sreforms successand iseventual evidentdollarization inare renewedMilei's mortgagegoals, lendingbut andthey surprisingrequire economiccautious growthnavigation.

Argentina'sDespite economicinheriting challengesan lieeconomy beyondravaged justby 211% inflation, Pres. TheseMilei's includebold deep-seated"shock fiscaltherapy" deficits,is repeatedbearing debtfruit defaults,in andArgentina. aHis relianceuncompromising focus on currencybalancing controlsbudgets that distort trade and investment,ending andmoney increaseprinting poverty.has Mileidriven isinflation addressingdown thesedramatically. issuesWhile bythe cuttingpath subsidieshas andbeen public spendingpainful, yetwith thesenecessary austerityrecession measures risk public backlash and economicspending contraction.cuts, Structuralthe reformsstrategy's andsuccess eventualis dollarizationevident arein Milei'srenewed goals,mortgage butlending theyand requiresurprising cautiouseconomic navigationgrowth.

ThereArgentina's economic challenges lie beyond just inflation. These include deep-seated fiscal deficits, repeated debt defaults, and a 15%reliance chanceon currency controls that Argentinadistort willtrade fullyand dollarizeinvestment, itsand economyincrease beforepoverty. 2028Milei is addressing these issues by cutting subsidies and public spending, accordingyet tothese theausterity Metaculusmeasures predictionrisk communitypublic backlash and economic contraction. Structural reforms and eventual dollarization are Milei's goals, but they require cautious navigation.

Metaculus Prediction

There's a 15% chance that Argentina will fully dollarize its economy before 2028, according to the Metaculus prediction community.


Articles on this story

Sign Up for Our Free Newsletters
Sign Up for Our Free Newsletters

Sign Up!
Sign Up Now!